Symbology Efforts Back Tech Upgrades as CLOs' Demand Surges

Record issuance pushes standardization, investment as new buyers enter.

David Keys, US Bank.

As Waters noted in a past examination of levereaged loans and CLO technology, these specialized debt markets lag significantly behind their peers in terms of operational efficiency.

A combination of boom-and-bust cyclicality, legal complexity, and general lack of impetus in such a niche market means that trade settlement can take, on average, at least two weeks. Bigger, more bespoke deals will range into months — plural.

The industry is once again hitting the boom side of the cycle, though. Leve

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